New tax regime shifts control to revenue agency while solid minerals ministry retains technical oversight….
Nigeria has moved to centralize the collection of mineral royalties, with the Nigeria Revenue Service (NRS) officially taking over the process from mining sector operators nationwide.
The decision followed a high-level meeting between the Minister of Solid Minerals Development, Dele Alake, and NRS Chairman, Zacch Adedeji, held in Abuja to align on implementation and coordination.
Backed by new tax laws
The transition is anchored on recently enacted tax reforms signed into law by President Bola Tinubu in June 2025, which empower the NRS to administer all federally collectible revenues.
Under the new framework, the collection of mineral royalties was officially transferred to the agency effective January 1, 2026, marking a significant shift in how revenues from Nigeria’s mining sector are managed.
Ministry retains technical role
Despite the handover, the Ministry of Solid Minerals Development will continue to play a critical supporting role. It will provide:
- Mineral pricing data
- Geological information
- Industry coordination
This collaboration is designed to ensure that royalty assessments remain accurate while improving overall efficiency in revenue collection.
Push for transparency and efficiency
Both institutions say the new arrangement is aimed at creating a more transparent and streamlined royalty system.
Plans are already underway to introduce a fully digital, end-to-end royalty administration platform, which is expected to simplify compliance, reduce leakages, and enhance accountability across the sector.
In addition, regular technical sessions will be held between the NRS and the ministry to address operational challenges and ensure smooth implementation.
Nationwide sensitisation planned
To support the transition, the government will launch a nationwide sensitisation campaign targeted at mining operators. The initiative will focus on educating stakeholders about new filing procedures, payment processes, and compliance requirements under the updated tax regime.
Authorities say the goal is to ensure that operators are fully informed and able to adapt quickly to the new system without disrupting business activities.
What this means for the sector
The move signals a broader effort by the government to strengthen revenue collection from the solid minerals sector, which has long been seen as underperforming despite its vast potential.
By consolidating revenue administration under a single agency while maintaining technical input from the ministry, officials believe the new structure will strike a balance between efficiency, transparency, and sector growth.
Mining operators have been urged to continue meeting their obligations and actively participate in the upcoming engagement sessions as the new framework takes full effect.
